Unit 2B - Contasts in World Development

Question 1

What is an MEDC?

Answer 1

More Economically Developed Country

Question 2

What is an LEDC?

Answer 2

Less Economically Developed Country

Question 3

What is an NIC?

Answer 3

Newly Industrialising Country

Question 4

Give an example of an MEDC

Answer 4

USA UK

Question 5

Give an example of an LEDC

Answer 5

Colombia Zimbabwe

Question 6

Give an example of an NIC

Answer 6

Brazil India China

Question 7

Definition for International Development

Answer 7

International development is the study of development that looks at the quality of life for humans within a country or area.

Question 8

International Development considers certain factors when considering the quality of life available to the people in an area. Name at least four of these factors.

Answer 8

Foreign aid Political decisions Healthcare Education Poverty reduction Infrastructure Economics Human rights Environment Wealth (that is available to the people)

Question 9

What International Development report issued in 1980 looked at the difference in development of the world’s countries?

Answer 9

The Brandt Report

Question 10

An International Development report in 1980 divided the world into two halves according to its quality of life, or development. Name and describe these two halves.

Answer 10

The rich north included all the countries of the industrialised ‘developed world’ (but also included Australia and New Zealand). The poor south included the low-income and middle-income countries of the ‘developing world’. This is known as the north-south divide.

Question 11

What is the Development gap?

Answer 11

The Development gap is the difference in economic activity, wealth and social measures between the rich MEDCs and the poorer LEDCs.

Question 12

What are social indicators?

Answer 12

Social indicators are used to assess how well a country is developing in key areas which affect people, such as health, education and diet. They are to do with the quality of life of individuals within a country.

Question 13

Name and describe at least four social indicators used to measure development.

Answer 13

Health - Life expectancy Life expectancy is a health indicator. It is the average lifespan of someone born in that country. Health - Infant Mortality Rate (IMR) This is the number of children who die before the age of one (from every 1,000 live births, per year) Health - Birth and Death rates (BR and DR) Health - The number of patients per doctor This measure shows the inequality between people in the North and South, as LEDCs usually have poorer healthcare. Education - Adult Literacy Rate One education measure is the percentage of the adult population who are able to both read and write. This tells us what the adult literacy rate is. Diet - Calorie intake Increasingly, UN agencies and development organisations are using calorie counts to measure the amount of food that people in different parts of the world are consuming.

Question 14

What are economic indicators?

Answer 14

These indicators help us to asses the amount of money or wealth within a country and how the people actually earn that wealth.

Question 15

Name and describe at least four economic indicators used to measure development.

Answer 15

GNP (Gross National Product, per capita) GNP is a very important indicator, as it shows us the total economic value of all of the goods and services that are provided in a country during the course of a year, divided by the number of people who live in the country. Increasingly, GNP is now measured using Purchasing Power Parity (PPP) in dollars. This means that 1 US dollar is equivalent to an amount of money that will have the same purchasing power in countries. Therefore the GNP will have been PPP-adjusted. These adjustments can radically alter the way that we look at the wealth of a country. GNI (Gross National Income) Vehicles per 1,000 people Sometimes a measure of the number of cars owned by people helps us understand the amount of wealth in a country. Percentage of people employed in primary activities Primary activities - Collecting and working with raw materials or resources such as farming (agriculture), mining, quarrying and fishing Secondary activities - Manufacturing or making something using raw materials collected on the primary industry Tertiary activities - Jobs where people provide a service to others, such as doctors, lawyers, teachers and hairdressers. Quaternary activities - People who are involved in the research and development of new products. They mostly feature in the information technology industries

Question 16

Assess the effectiveness of two social indicators in relation to development. How can they be unreliable?

Answer 16

Health - Life expectancy Can be affected by wars, natural disasters and disease. Health - Birth and Death Rate Birth rates and death rates of a country are too unreliable and do not properly reflect the development of a country.

Question 17

Assess the effectiveness of two economic indicators in relation to development. How can they be unreliable?

Answer 17

Vehicles per 1,000 people Many LEDCs may invest in cheap cars, raising the number of cars faster than the overall development of the country. GNP, per capita Without adjusting the GNP according to the countries Purchasing Power Parity (PPP), the GNP per capita will be unreliable.

Question 18

In what year did the UN decide to use the HDI?

Answer 18

1990

Question 19

What does the term HDI stand for in terms of development?

Answer 19

Human Development Index

Question 20

Why can social and economic indicators be misleading?

Answer 20

They are averages. It can be difficult to accurately measure the wealth of a country. There are not only contrasts between countries, but contrasts within countries too.

Question 21

In terms of the HDI, what are ‘goalposts’?

Answer 21

The HDI sets a minimum and maximum for each dimension, called goalposts, and then shows where each country stands in relation to these goalposts as a value between 0 and 1.

Question 22

What social and economic indicators make up the HDI?

Answer 22

Original the three measures were for life expectancy, educational attainment (including adult literacy rates and student enrolment rates) and GNP per capita. However, the education component of the HDI is now measured by the mean years of schooling for children of school going age. Overall, four indicators: - Life expectancy at birth - Mean years of schooling - Expected years of schooling - Gross National Income per Capita Create the three dimensions: - Health - Education - Living standards The average of which form the Human Development Index.

Question 23

What are some of the problems associated with using the HDI?

Answer 23

Some people are concerned that the HDI still allows too much influence on wealth

Question 24

Name five of the factors that hinder development.

Answer 24

• Historical factors • Environmental factors - Natural hazards - Extreme climates - Natural resources • Dependance on primary activities • Debt • Politics

Question 25

Describe one named strategy that is attempting to reduce the global development gap.

Answer 25

The Jubilee Debt Campaign

Question 26

Describe the core aims of a strategy that is attempting to reduce the global development gap.

Answer 26

1. Change the UK government policy on debt 2. Ensure that maximum influence is made on the World Bank and International Monetary Fund (IMF) through the UK government

Question 27

Name the country and/or organisations associated with a strategy that is attempting to reduce the global development gap.

Answer 27

The JDC is a coalition of charitable and church groups.

Question 28

The JDC was a successor campaign to the …

Answer 28

Jubilee 2000 Campaign

Question 29

Name the actions taken by a strategy that is attempting to reduce the global development gap.

Answer 29

Jubilee Debt Campaign - Actions taken (Successful Campaigns) 1. Ending the Vulture Culture 2. Cancelling Haiti’s Debt 3. Other Campaigns - Lift the lid on bad loans - Cut the strings - Make Poverty History - Make Trade Fair

Question 30

Definition of Globalisation

Answer 30

Globalisation is the process of the world becoming more interconnected and interdependent.

Question 31

What does MNC stand for?

Answer 31

Multi-National Company

Question 32

Definition of an MNC

Answer 32

An MNC (Multi-National Company) is a company which has businesses, factories and offices in more than one country across the world.

Question 33

Give five points on how globalisation has helped development.

Answer 33

1. Globalisation creates jobs in LEDCs, giving employees a reliable source of income in formal jobs. 2. Often MNCs will spend money to try to improve the social conditions and local infrastructure. Governments, keen to attract vital foreign investment, will spend money on improving roads, airports and transportation and communication links. 3. Additional revenue means that foreign investments and money are coming into the economy. 4. People will learn and develop new skills, and often receive better education. 5. New skills, technology and specialist machinery will be brought into a poor country, making it more modern.

Question 34

Give four points on how globalisation has hindered development.

Answer 34

1. Although jobs are created in LEDCs, the rate of pay tends to be much lower than in MEDCs. 2. Working conditions are not always good. Employees in LEDCs often have to work long hours in very poor and often unsafe working conditions. 3. In reality the depth of foreign investment is minimal. All profits flow back to the headquarters in the MEDC and the LEDCs do not have the same access to the wealth. 4. There is no guaranteed job security. Many of the jobs in LEDCs are semi-skilled and easily replaced. If a company has chosen to relocate manufacturing once, there is nothing to stop them moving again to a country where more incentives are offered. Often the MNCs will take any machinery, equipment and expertise with them when they go.

Question 35

Globalisation Case Study Name an MNC which locates in an LEDC or NIC.

Answer 35

Nike China

Question 36

What are the advantages to Nike (the MNC) for locating in an LEDC or an NIC? Give six examples.

Answer 36

1. Cheap labour 2. Cheap land and services 3. Lower taxes 4. Fewer workers rights 5. Fewer environmental laws 6. Access to a global market

Question 37

How has globalisation helped development in China? Give six examples.

Answer 37

1. Investment by Nike brings jobs and often of a better standard of employment than local jobs. This helps to improve the standard of living of many people who work for Nike. 2. As the global significance of Nike’s relationship with China increases, more and more foreign investments and money will flow into China, further helping the Chinese economy. 3. Facilitating global companies such as Nike has led to improvements in the service and infrastructure within China. Global companies require global transport and communication links and this has raised standards within China. 4. Nike claims that it has been instrumental in improving working conditions for employees within China. It spends around $10 million a year implementing its Code of Conduct in factories, enhancing regulations for fire safety, air quality, minimum wages and overtime limits. It has also employed a team of 100 factory inspectors who travel around monitoring conditions. 5. In some instances other MNCs who are looking for new production bases will see where Nike has put its factories and consider similar locations for their own factories. This will multiply the impact and amount of work for people in the country and is known as the ‘multiplier effect’. 6. For employees who do well in the company there might be increased opportunities to work overseas.

Question 38

How has globalisation hindered development in China? Give six examples.

Answer 38

1. Wages are still quite low on a global scale. 2. Many of the jobs are low skilled and do not require high levels of education. It is difficult for people to improve themselves. 3. Working conditions in Chinese factories, although improving, are not universal and most workers are still working and living in conditions that are much worse than the global norm. 4. Some people have likened working for other, less scrupulous, MNCs to economic slavery. In some cases there has been potential for child labour in factories. 5. Much of the profits generated by the products manufactured by MNCs in China do not go back into the Chinese economy. 6. There is always the possibility that an MNC could pull out of China and take its jobs to another country that will give the company a better deal.

Question 39

In terms of the patterns of world trade, What is interdependence?

Answer 39

Interdependence is when a relationship is built up between countries to exchange goods and services.

Question 40

In terms of the patterns of word trade, What is trade?

Answer 40

Trade is the flow and movement of goods and services between producers and consumers.

Question 41

In terms of the patterns of world trade, What are imports?

Answer 41

Imports refer to the products bought and brought into a country.

Question 42

In terms of the patterns of world trade, What are exports?

Answer 42

Exports are the products sold and sent to another country.

Question 43

Name some of the problems faced by LEDCs as a direct result of the patterns of world trade.

Answer 43

1. Reliance on primary products 2. Tariffs 3. Trading Blocs

Question 44

In terms of the patterns of world trade, give an example of a trade bloc.

Answer 44

EU (European Union) AU (African Union) AL (Arab League)

Question 45

Describe in detail some of the problems faced by LEDCs as a direct result of the patterns of world trade.

Answer 45

1. Reliance on primary products Often LEDCs are reliant on the export of one or two primary products to help them generate foreign currency. It is very risky for a country to rely on one product, especially agricultural products

Question 46

In terms of the patterns of world trade, what is a ‘cash crop’?

Answer 46

A cash crop is an agricultural crop that is grown for sale for profit.

Question 47

In terms of the patterns of world trade, what is the balance of trade?

Answer 47

The balance of trade is the difference between the cost of imports and the value of exports, and thus determines whether or not a country profits from its trade.

Question 48

Definition of appropriate technology

Answer 48

Appropriate technology is technology that is suited to the needs, skills, knowledge, resources and wealth of local people, in the environment in which they live.

Question 49

Any project that is defined as sustainable must: (Give six points)

Answer 49

• Improve quality of life • Improve living standards • Encourage economic development • Give future generations a higher chance of survival • Not harm the environment • Use appropriate technology

Question 50

Sustainable development is …

Answer 50

“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Question 51

Appropriate technology will: (Give six points)

Answer 51

• Avoid high capital investment costs by not using expensive machinery and sources of energy • Usually be labour intensive, as many people in LEDCs are unemployed and there is little value in replacing people with machines • Be suited to the skill levels of local people • Attempt to develop local industries and farming methods rather than trying to replace them • Use local resources as far as possible and will try to source renewable resources • Help to conserve the local environment

Question 52

Appropriate Technology Case Study, Name the LEDC involved.

Answer 52

Uganda

Question 53

Appropriate Technology Case Study, Give the full name of the case study.

Answer 53

Case Study: The Development of a borehole and hand pump in Uganda (an LEDC)

Question 54

Appropriate Technology Case Study, Describe the problem that the case addressed.

Answer 54

The quantity and quality of water in Uganda is poor. Quantity: - The area is arid in parts. - The local population is increasing rapidly, which puts more pressure on this valuable resource. - Farmers are increasingly using water for irrigation. - As industry in the area starts to develop, more water is needed. - As living standards improve, more people want to buy technologies that use more water, such as flushing toilets and washing machines. Quality: - The local people do not have money to treat their water for chemicals or water purification tablets. - There is a lack of basic sanitation. Often polluted sewage mixes with drinking water. - Disease can spread quickly in the hot climate.

Question 55

Appropriate Technology Case Study, Describe the solution that was created to address the problem.

Answer 55

Solutions from Fields of Life in Uganda - Charitable organisation - Working in Uganda since 1995 - Established by Rev Trevor Stevenson - Fields of Life are committed to supplying safe, clean water, especially to vulnerable and marginalised groups, mainly women and children. - Drill 10 wells per month, which provides for 10,000 people - Over 10 years, 1000 wells provides for 1000000 people

Question 56

Appropriate Technology Case Study, Why is this appropriate technology, LEDC Case Study

Answer 56

• Cost: They do not have to pay money for the construction of the well. • Technology: A hand pump is installed at each borehole rather than a mechanical or electric and battery pump. • Maintenance: A water user committee takes responsibility for the operation and maintenance of the borehole. • Responsibility of upkeep: Often, some local people will be trained to troubleshoot simple problems with the well • Community involvement and organisation: The Fields of Life team prepare the local community in advance of digging any well. • Education and hygiene: Fields of life provide some basic training about water use and sanitation.

Question 57

Appropriate Technology Case Study, What are the economic improvements of this solution?

Answer 57

• Time - Industry - Farming - Health benefits

Question 58

Appropriate Technology Case Study, What are the environmental improvements of this solution?

Answer 58

• Environmental impact - Animals - Pollution

Question 59

Appropriate Technology Case Study, What are the social improvements of this solution?

Answer 59

• Shared responsibility - A new community spirit - Feeling better - Empowerment

Question 60

Appropriate Technology Case Study, Are there any downsides or negative points to this solution?

Answer 60

• Without maintenance, most hand-pumps only last 3-5 years • In 2007, only 40% of the 350,000 pumps installed in Africa were still in use.

Question 61

Appropriate Technology Case Study, What are some of the key differences between appropriate technology and hi-technology? (Give six points)

Answer 61

Appropriate technology 1. Smaller scale 2. Cheaper equipment 3. Small demand for energy/ electricity 4. Large demand for labour 5. Uses local resources 6. Involves traditional skills where appropriate Hi-technology 1. Large scale 2. Expensive equipment 3. Big demand for energy/ electricity 4. Employees few people 5. Often needs imported materials 6. Requires that people get training in new skills

Question 62

What is Fairtrade?

Answer 62

Fairtrade is a strategy used to provide an organised approach to help producers in LEDCs gain better trading conditions and promote sustainability.

Question 63

Fairtrade, Why is Fairtrade good for producers? What advantages does Fairtrade bring to LEDCs?

Answer 63

1. Fair and stable prices Buyers have to pay the Fairtrade minimum price. This means that when the market prices fall below a sustainable level, farmers do not lose out and when the market price is higher than the Fairtrade minimum price, the buyer must pay the market price. 2. Fairtrade for development Producers are paid a Fairtrade premium, which they can spend on whatever they like. 3. Empowering small-scale farmers

Question 64

Aid, Many charities are NGOs. What does NGO stand for?

Answer 64

Non-governmental organisation

Question 65

Aid, What is short term aid?

Answer 65

Short term aid is often in response to an emergency and is usually linked to a particular need. For example, following natural disasters, LEDCs often need food, water and shelter so that people can survive the immediate aftermath of the event.

Question 66

Aid, What is long term aid?

Answer 66

Long term aid is often a more far-reaching, sustainable type of help, given over a long period of time. Often it will take a long time for any impact to be noted, as the help programme attempts to improve an aspect of life in an LEDC (socially, economically, educationally or environmentally). The aim with long term aid is to enable the LEDC to sustain itself further in the future and to have less need for help from external agencies.

Question 67

Aid, What is bilateral aid?

Answer 67

Bilateral aid is the type of help which is given directly from one government to another government. Bilateral means that two countries are involved and the aid is usually tied.

Question 68

Aid, What is multilateral aid?

Answer 68

This is aid that is given from national governments to world/international organisations such as the World Bank, the World Health Organisation (WHO) or the United Nations (UN). This money is then distributed to the various development projects which need it around the world.

Question 69

Aid, What is voluntary aid?

Answer 69

Sometimes this is referred to as charitable aid. Many charities are called NGOs (Non-Governmental Organisations), are based in MEDCs and have a particular interest in a part of the world, medical issue or cause. They are usually funded by the public and often organise their own aid programmes and projects on a small scale within countries, on their own or alongside partner organisations.

Question 70

Aid, What is tied aid?

Answer 70

The big issue with much of the aid given to countries is that it is ‘tied’. This means that the money given by the donor government is specified for particular projects.

Question 71

Aid, What are some of the benefits of aid?

Answer 71

1. Much short term and humanitarian aid can help save lives following a natural disaster or war. 2. As short term aid is brought in as actual goods by charities, there is less chance of it being sold to pay for political corruption. 3. Aid can help to improve the standard of living of people in recipient countries. 4. If aid is used properly and focused effectively, it will allow a country to develop and improve in a sustainable manner. 5. Some governments and some global organisations have been able to take audits of the value for money that they are getting for the aid they give. They want to make sure that money is making a difference and changing lives. Many countries have responded by cutting back the amount of multilateral or tied aid that they use.

Question 72

Aid, What are some of the problems with aid?

Answer 72

1. Aid does not always reach the poorest people who really need it. Political corruption and poor administration systems in countries means that aid fails to reach the people. 2. Many LEDCs have come to depend on the regular flow of aid. This means that if the flow ever ceases (for example, during a global recession) it could cause problems for the people in the LEDC. 3. It can be difficult for countries to become independent if they rely on other countries for handouts. 4. If the aid is given as low interest loans, this creates a new dependency relationship between the two countries and leads to debt. 5. Tied aid puts a lot of conditions on LEDCs, which can make receiving aid less desirable. 6. Aid can undermine local producers. As new food supplies come into the country this can have a negative impact on the prices of produce grown and sold within the country. People will also prefer ‘free food’ to food they have to pay for.

Question 73

What is aid?

Answer 73

Aid is the process of one country or organisation giving resources to another country.